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US home prices increase faster than expected in November
[NEW YORK] US single-family home price increases accelerated at a faster pace than expected in November and rising mortgage rates coupled with potential economic growth could push them higher, a survey showed on Tuesday.
The S&P CoreLogic Case-Shiller composite index of 20 metropolitan areas rose 5.3 per cent in November on a year-over-year basis, up from a 5.1 per cent climb in October. November's result topped the estimate of 5.1 per cent from a Reuters poll of economists.
"The new Administration in Washington is seeking faster economic growth, increased investment in infrastructure, and changes in tax policy which could affect housing and home prices," said David M Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices.
"Further gains in personal income and employment may increase the demand for housing and add to price pressures when home prices are already rising about twice as fast as inflation," Mr Blitzer said.
Prices in the 20 cities rose 0.9 per cent in November after an upwardly revised 0.7 per cent in October on a seasonally adjusted basis, the survey showed, outpacing expectations for a 0.7 per cent increase.
On a non-seasonally adjusted basis, prices increased 0.2 per cent from October, in-line with expectations.